Counties receive first funds to mitigate casino impacts

Chris T. Nguyen

Thursday, July 15, 2004 | 8:43 a.m.

LOS ANGELES -- Counties have begun receiving money for the first time from a fund designed to help them address traffic, public safety and other concerns related to tribal casinos.

Twenty-five counties had until June 30 to apply for their share of $25 million from the fund. It is one of two funds casino-operating tribes have contributed to since signing gambling compacts with the state in 1999.

The other helps non-gambling tribes or those with small casinos and receives the vast majority of the tribes' contributions. Combined, 28 of California's more than 50 gambling tribes pay more than $100 million a year into the two funds.

The local government money is to be divided among 25 counties, including eight that have casino-owning tribes that don't pay into the fund because their gambling operations are too small. The total amount allocated from the fund this year was decided by the Legislature, which also will set the amount in subsequent years.

The state already has cut checks totaling $4 million to 11 counties and plans to release millions more to another 10, said Garin Casaleggio, spokesman for the state controller's office. Counties are paid based on the number of slot machines and casinos they have and also can share that money with cities.

Payments to four counties -- Del Norte, Imperial, Inyo and Modoc -- are being withheld because they missed the deadline.

Many cities and counties are using the money for road work and to hire police officers, sheriff's deputies, firefighters and prosecutors.

Butte County is spending some of the nearly $1 million it received to hire a forensic accountant to investigate financial crimes at two casinos.

District Attorney Michael Ramsey said his office has prosecuted cases involving people gambling with their welfare money, cashing overdrawn or forged checks at local casinos and selling stolen property for gambling money. Ramsey said such crimes have nearly doubled since 1999.

"Anytime you have money out there, there's going to be people who will try to get that money," Ramsey said.

San Bernardino County is spending $1.5 million from the fund on law enforcement, a fire truck and remodeling an intersection to handle more traffic near the San Manuel Band of Mission Indians' existing casino and a new one the tribe is building.

"This is chump change," said San Bernardino City Councilman Neil Derry, who represents the neighborhood surrounding the San Manuel casino. "I don't think you can mitigate everything. The only way you can mitigate everything is to move the casino."

San Manuel Tribal Chairman Deron Marquez said the tribe has tried to reduce problems associated with its casino, paying for sound walls, litter pickup, an elementary school crossing guard and three vehicles for the San Bernardino Fire Department.

He said only some residents remain upset.

"I think no matter what we do, they will not be happy," Marquez said. "They want us to close. They want us to go away, and that's not going to happen. They have forgotten the reservation has been there."